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A. Depreciation
B. Rent
C. Drawing
D. Salaries
Depreciation is a non cash expense because it does not involve outflow of cash instead it will be less from assets net book value or historic cost depending upon company depreciation method. it will appear in Income statement as an expense and in cashflow statement it will be added back to profits
A. Depreciation ////////////////
Option A is the right answer.
Depreciation is non cash expense
Depreciation is non cash because it not involve a cash payment. As a result, the statement of cash flows prepared under the indirect method will add depreciation expense to the amount of net income.
Depreciation is non cash flow and it also does not require any cash outflow only the decrease the book value of asset.
Answer is
Depreciation for sure....
depreciation is non cash expense the option A is true
Non-cash item is Depreciation.
A noncash expense is an expense that is reported on the income statement of the current accounting period, but there was no related cash payment during the period. A common example of a noncash expense is depreciation.
Depreciation expense so we deduct it from the net profit on the accrual basis when preparing cash flows statement
